Internet Solutions, Telkom’s only real competitor in the ADSL wholesale space, reduced its per-Gig ADSL rates recently.
The new wholesale pricing of R 55-00 per GB, which includes 10 GB of free local traffic, is a significant reduction over its previous price of R 89-00 per GB.
According the Internet Solutions (IS) it is struggling to make any margin on their ADSL offerings due to the high cost of Telkom’s IPConnect product and both national and international bandwidth.
In a recent presentation Geoff Rehmet from IS pointed out that it costs them R 67.58 to provision 1 GB of wholesale ADSL bandwidth.
It is encouraging to see that, despite the challenges it faces, Internet Solutions were able to introduce a wholesale offering that can compete with Telkom’s latest prices.
While its R 55-00 per GB is higher than Telkom’s rates ranging between R 42.74 and R 52.91 per Gigabyte, the additional local traffic makes it an attractive offering to both ISP’s and ADSL users.